Are you wanting to develop your property portfolio but have some concerns about investing? We have put your most frequently asked investment questions to Advantage’s Senior Investment Consultant Ryan.
Ryan has worked within the property industry for 6 years and has a wide range of experience within the buy-to-let market for both short-term and long-term lets. Every client has differing goals and whether your investment goal is to increase your monthly cash flow, boost your capital growth or develop a property portfolio, Ryan is experienced in but not limited to the above and can help you achieve your investment goals whatever they may be.
We hope these investment questions answered by Ryan, an industry expert, can help you in starting or continuing your investment journey.
Why Should I Invest In A UK Staycation Property?
Ever since the start of the pandemic the UK and the whole of Europe saw a boom in the staycation market, while many predicted that once international travel re-opened post-pandemic, domestic travel would decrease however, the UK staycation market has seen a year-on-year increase in staycations.
More importantly, the returns and security of investing in a staycation property tend to be a lot more reliable due to the reputation of the companies who provide them. The staycation market is a wise short-term and long-term investment due to the annual increasing price and high demand for staycations.
The UK’s staycation market shows no signs of stagnating and Advantage have a range of properties in staycation hotspot areas.
Why Should I Invest In An Off-Plan Investment?
With how the current interest rates are on mortgages, it makes it near impossible to see an attractive monthly cash flow. What we have found is that most investors are switching to off-plan because they can purchase properties below market value by 10-15%. This means during the construction stage; your property has the potential to grow in equity and its value would appreciate once completed.
This allows investors to re-mortgage after just 2 years, release the liquidity and use it as a deposit for another property. This can be seen as a great way to build a property portfolio in a short space of time as investors continuously repeat this cycle of adding new properties regularly using the liquidity from the previous investment.
Investing in off-plan also gives you a brand-new property with a 10-year warranty, giving you peace of mind, and minimising the need for maintenance and repairs while maximising your profits.
Here at Advantage, we understand that not all investors will have the full liquidity to invest straight away, so offing payment plans for off-plan investments enables us to suit individual investor’s needs, meaning that payments such as deposits, stamp duty and legal fees can all be paid gradually while still being able to obtain a fantastic investment opportunity.
Is There A Risk Of Wear And Tear If I Invest In A Short-Term Let?
I would argue that there is less ‘wear and tear’ with short-term lets. Why? Because with long-term tenants, they are using the property more frequently which can cause wear and tear quickly.
With short-term lets, you will have void periods which means the property will have short periods of the year without a tenant, meaning there is less time for wear and tear to happen as opposed to having a long-term tenant. It’s also checked more frequently for wear and tear after every use, unlike long-term rentals which go years without being checked. Deposits are also taken, so if there were to be any damage, this would be fixed sooner rather than later at no cost of your own.
Although each individual short-term let tenant is different, most of the time they are letting while on business or leisure trips meaning more time would be spent exploring the city they are visiting rather than in the actual apartment.
Will I Be Able To Find A Tenant For My Buy To Let?
We work with management companies across the UK who specialise in short-term lets and it is within their best interest to rent out your property as that is when they get paid, which is a win-win situation for both parties.
Unlike many other investment companies, we facilitate the full process of your investment, meaning we have the advantage of being able to put you in contact with one of our trusted management companies to help you get the best out of your investment.
Some management companies offer rental guarantees to give clients peace of mind for a number of years, which is definitely something to take advantage of.
We offer luxury investments in high demand and in prime locations where investors have the best opportunity to secure tenants. All our investment opportunities are in UK hotspots where both short-term and long-term rentals are high in demand.
How Soon Will I Receive An Income On My Investment?
The timescale in which income is generated by an investment ultimately depends on the type of investment, for example, an off-plan investment may take slightly longer depending on the construction process but may have the potential for greater returns.
If your investment goal is to generate immediate income then we have a variety of options however, each investment is unique and each investor invests into property with differing goals in mind.
While it is not possible to give a generalised answer to this question, you can get in touch to speak with myself or one of the team to talk more about specific investment opportunities and their returns.
Here at Advantage, we will work with our clients throughout the whole process from sourcing the investment to negotiating a price, to selecting the right broker and solicitor, ensuring you get the best out of any investment with us. If you have any more investment questions Ryan did not cover here, please get in touch by clicking here to speak to Ryan or another member of the team who will be on hand to answer any of your questions.
Are you interested in looking for a UK investment? Get in touch by emailing contact@advantageinvestment.co.uk or calling 0151 433 9300 to speak to Ryan or another member of the team who can answer your investment questions and help you find your perfect investment.
